EURJPY Price Analysis – May 04
Demand level of $123 may be penetrated and face $121 level should the Bears increase their pressure. In case the Bulls defend the $123 level, the price may bounce and face the north.
Supply levels: $125, $127, $129
Demand levels: $123, $121, $119
EURJPY Long-term trend: Bearish
EURJPY is on the bearish movement on the daily chart. On April 26, EURJPY experienced a pullback to retest the broken level and that is why daily Doji candle was formed on that day. The $125 level was tested. On May 01, the Bears resumed their bearish trend by the formation of daily bearish candles pushing the EURJPY price down towards $123 level.
The currency pair is currently trading below the 21 periods EMA and the 50 periods EMA. The former EMA has crossed the later downside as a bearish trend signal. The Relative strength Index period 14 is at 40 levels with the signal lines bending down to indicate sell signal and also indicates that the sellers are still in control of the EURJPY market. Demand level of $123 may be penetrated and face $121 level should the Bears increase their pressure. In case the Bulls defend the $123 level, the price may bounce and face the north.
EURJPY Short-term Trend: Bearish
EURJPY is on the bearish trend on the 4-hour chart. The Bears were in full control of the EURJPY market. The Bulls pushed the price up to the potential reversal zone; a point at which price reacted either positively or negatively any time it reaches the level. The currency pair reversed On April 17 at the zone and the price fell towards $123 levels.
Further declination of EURJPY is possible as the Relative Strength period 14 is at 40 levels and the signal lines pointing down which connotes sell signal.
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